HOUSTON, April 2, 2012 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal") (TSX:CEN) (AIM:CEO) announces the successful Miocene discovery in the Bua Ban South A-04 well.
The Bua Ban South A-04 well was drilled to a depth of 3,250 feet TVD on the eastern flank fault block at Bua Ban South, approximately 1.5 miles south of the Bua Ban Main A-11 well. The A-04 well encountered 42 feet of net pay in the Lower Miocene M75 and M100 sands with 29.5% average porosity. The M75 is a newly discovered pay sand in the Lower Miocene. Initial results indicate that this is an extension of the Miocene reservoir which was encountered in the Bua Ban Main A-11. The A-11 well has been producing since September 2010 and is currently producing over 500 bopd. The minimum areal extent of the closure is approximately 550 acres.
Randy Bartley, President & Chief Executive Officer, commented:
"We are greatly encouraged by the successful Miocene results in the A-04 well. We have now discovered oil in three different Miocene intervals between Bua Ban Main and Bua Ban South. This new discovery is very positive for the Miocene remaining potential across the entire basin as well as supporting the potential of recent Oligocene discoveries in the Bua Ban South area.
"The Bua Ban South A-03ST#1 well has been spudded and will test the Eocene objective. We are currently evaluating locations for Miocene appraisal wells and will begin drilling those following the A-03ST#1."
Randy Bartley, President and Chief Executive Officer of the Company and a member of the Society of Petroleum Engineering and Jerry Moon, Vice President, Technical & Business Development, a member of the American Association of Petroleum Geologists, a Certified Petroleum Geologist and a Licensed Professional Geoscientist in the state of Texas, have reviewed the contents of this announcement.
The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062
Additional information, including the Company's complete competent person's report may be found on the Company's website at www.CoastalEnergy.com or may be found in documents filed on SEDAR at www.sedar.com.
This statement contains 'forward-looking statements' as defined by the applicable securities legislation. Statements relating to current and future drilling results, existence and recoverability of potential hydrocarbon reserves, production amounts or revenues, forward capital expenditures, operation costs, oil and gas price forecasts and similar matters are based on current data and information and should be viewed as forward-looking statements. Such statements are not guarantees of future results and are subject to risks and uncertainties beyond Coastal Energy's control. Actual results may differ substantially from the forward-looking statements.
These securities have not been registered under United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.